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by lo_zamoyski
218 days ago
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Subscriptions can create an illusion of a deal, because in principle, you’re ostensibly able to benefit more for a fixed price. But are you? Netflix is a good example. You can watch as much as you want for a flat rate, but how many people watch enough to justify the monthly fee? (Putting aside the question of whether watching so much is actually a benefit in the first place.) Companies recognize the distinction between potential use and actual use, and so in practice, many are paying more for less and subsidizing the outliers that consume more. When actual use exceeds predicted use, the company will raise the price of subscription. Subscriptions make sense for situations where there are regular maintenance costs or where the benefits are received at a steady and proportional rate. |
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